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Sep 30, 2025
Noodles & Co Q3 2025 Earnings Report
Noodles & Company reported a slight revenue decrease, increased net loss, but strong comparable restaurant sales growth and improved adjusted EBITDA for Q3 2025.
Key Takeaways
Noodles & Company experienced a slight revenue decrease of 0.5% to $122.1 million in the third quarter of 2025 compared to the previous year. The company reported a net loss of $9.2 million, or $0.20 loss per diluted share, which included $5.3 million in pre-tax restaurant impairments. Despite these challenges, the company achieved a 4.0% system-wide comparable restaurant sales increase and a 32.7% increase in Adjusted EBITDA to $6.5 million, indicating strong operational improvements and sales momentum.
Total revenue decreased by 0.5% to $122.1 million in Q3 2025, down from $122.8 million in Q3 2024.
System-wide comparable restaurant sales increased by 4.0%, with company-owned restaurants up 4.0% and franchise restaurants up 4.3%.
Net loss widened to $9.2 million ($0.20 loss per diluted share) in Q3 2025, compared to a net loss of $6.8 million ($0.15 loss per diluted share) in Q3 2024, primarily due to $5.3 million in restaurant impairments.
Adjusted EBITDA saw a significant increase of 32.7% to $6.5 million, up from $4.9 million in the prior year's quarter, reflecting improved operational performance.
Revenue by Segment
Forward Guidance
Noodles & Company is revising its fiscal year 2025 guidance, expecting total revenue between $492 million and $495 million, with comparable restaurant sales growth of 3.6% to 4.2%. The company plans to open two new company-owned restaurants while closing 31 to 34 company-owned and 7 to 8 franchise restaurants.
Positive Outlook
- Anticipated total revenue for fiscal year 2025 is $492 million to $495 million.
- Expected comparable restaurant sales growth of 3.6% to 4.2% for the full year 2025.
- Restaurant level contribution margins are projected to be between 12.3% and 12.7%.
- Plans to open two new company-owned restaurants.
- Strategic review initiated to explore ways to maximize stockholder value, including potential refinancing, refranchising, or sale of the business.
Challenges Ahead
- Significant number of planned restaurant closures: 31 to 34 company-owned and 7 to 8 franchise restaurants.
- General and administrative expenses are expected to be $48 million to $49 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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